Do catch-up contributions increase 401(k) saving?

Guan, Qi, Matthew S. Rutledge, April Yanyuan Wu, and Francis M. Vitagliano. “Do catch-up contributions increase 401(k) saving?”. Issue in Brief 15-10, Chestnut Hill, Mass.: Center for Retirement Research at Boston College, July 2015. http://hdl.handle.net/2345/bc-ir:104559.
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Abstract

The brief's key findings are: (1) To encourage Americans to save more for retirement, some suggest raising 401(k) contribution limits. (2) To assess such an option, this analysis estimates the effects of a 2001 increase in 401(k) limits that also introduced a higher "catch-up" limit for those 50 and over. (3) The increase in the limits did boost contributions in 2002-05, but mostly for those near the prior limits, particularly those eligible to make catch-up contributions. (4) Since few participants – only about 10 percent – are constrained by the limits, raising them does not offer a broad-based solution for low saving rates.

Title
Do catch-up contributions increase 401(k) saving?
Author
Guan, Qi
Rutledge, Matthew S.
Wu, April Yanyuan
Vitagliano, Francis M.
Center
Center for Retirement Research
Genre
report
Date Issued
July 2015
Publisher
Center for Retirement Research at Boston College
Series Title
Issue in Brief
Series Number
15-10
Version Identification
Version of record.
Persistent Link
http://hdl.handle.net/2345/bc-ir:104559
Use Restrictions
These materials are made available for use in research, teaching and private study, pursuant to U.S. Copyright Law. The user must assume full responsibility for any use of the materials, including but not limited to, infringement of copyright and publication rights of reproduced materials. Any materials used for academic research or otherwise should be fully credited with the source. The publisher or original authors may retain copyright to the materials.
Subject
Financing retirement

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